South Korea’s LG Energy Solution reported on Wednesday that Ford Motor has terminated a 9.6 trillion won ($6.50 billion) EV battery-supply arrangement.

In a regulatory statement, the South Korean battery producer said the termination followed Ford’s notification to suspend manufacturing of various EV models owing to legislative changes and EV market projection revisions.

LGES signed two European EV battery contracts with Ford Motor in October for 2026 and 2027.

Ford announced on Monday that it will take a $19.5 billion writedown and eliminate three electric-vehicle models, the most dramatic illustration of the auto industry’s withdrawal from battery-powered cars in reaction to the Trump administration’s regulations and waning EV demand.

Last week, South Korean battery giant SK On cancelled its joint venture with Ford for their US battery facilities.
SK On and Ford spent $11.4 billion on US battery plants in 2022.